This paper reviews the leading ideas that have emerged within two paradigms of price adjustment. Neither, it appears, provides a satisfactory theoretical scheme when taken in isolation. This paper concludes that an attempt to merge the more convincing elements of each is needed, and some suggestions for such a merger are put forward.
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Output Fluctuations and Gradual Price Adjustment
1981, National Bureau of Economic Research
electronic resource
in English
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August 1981.
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